GLXY CEO Mike Novogratz Says ‘Drop The Powell Witch Hunt’ Ahead Of Kevin Warsh Confirmation – BMNR’s Tom Lee Predicts Bull Run

• Galaxy CEO Mike Novogratz said that criticism of Powell has been overextended and no longer reflects current market dynamics.
• Meanwhile, Bitmine Chair Tom Lee said markets are likely to “test” the incoming Fed leadership before stabilizing.
• Lee expects markets to enter a bull run for an 18-24 month period that follows.

Galaxy Digital (GLXY) CEO Mike Novogratz and Bitmine Immersion Technologies (BMNR) chairman Tom Lee are not worried about the change of guard at the Federal Reserve ahead of Kevin Warsh’s confirmation hearing, scheduled for later on Tuesday.

In an interview with CNBC, Lee stated that he believes the market will still test the new Fed Chair, but then we will go on to have “one of the best 18-24 month periods we have seen in our lives.”

Novogratz struck a similar tone in a post on X. “Two things can be true at the same time,” he wrote. “Warsh will be a great Fed Chair and it’s time drop the Powell witch hunt and move on.”

Why Fed Drama Matters For Crypto

The leadership transition comes at a time when crypto markets remain sensitive to interest rate expectations and liquidity conditions. Powell’s tenure coincided with aggressive rate hikes and tighter financial conditions, which weighed on risk assets. 

Meanwhile, Warsh has previously expressed support for financial innovation, including blockchain technology, while cautioning against excessive regulation.

Both Novogratz and Lee suggested that while short-term volatility may occur as Kevin Warsh steps in to replace current Fed Chair Jerome Powell in May, the broader trajectory for digital assets remains upward. 

Markets Rally Ahead of Kevin Warsh’s Senate Confirmation Hearing

U.S. equities and the cryptocurrency market rallied during early morning trade on Tuesday. The SPDR S&P 500 ETF (SPY) was up 0.47%, the SPDR Dow Jones Industrial Average ETF (DIA) gained 0.65%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.55% higher. Retail sentiment around SPY on Stocktwits trended in ‘extremely bullish’ territory over the past day, while chatter rose to ‘normal’ from ‘low’ levels.

The overall cryptocurrency market rose 1.6% in the last 24 hours, with Bitcoin (BTC) leading gains among major tokens. Bitcoin’s price rose 1.7% in the last 24 hours to around $76,500. Retail sentiment around the apex cryptocurrency on Stocktwits trended in ‘bullish’ territory over the past day, while chatter slipped to ‘normal’ from ‘high’ levels. 

GLXY’s Shares Move Higher Despite Analyst Cuts

GLXY’s stock rose more than 2% in pre-market trade, with retail sentiment also trending in the ‘bullish’ zone over the past day. Chatter around the shares rose to ‘high’ from ‘normal’ levels. 

The uptick came despite Piper Sandler lowering its price target on GLXY’s stock to $36 from $42 on Tuesday morning, as per TheFly. It kept an ‘Overweight’ rating on the shares amid its revaluation of crypto-linked equities ahead of first quarter (Q1) earnings. 

Earlier this month, Citizens and Cantor Fitzgerald also lowered their price targets for GLXY’s stock. Cantor Fitzgerald lowered its price target to $30 from $48 and kept an ‘Overweight’ rating on the shares, while Citizens lowered its price target to $55 from $60 and kept an ‘Outperform’ rating on the shares. 

All three firms cited Bitcoin (BTC) and cryptocurrency volatility as the central challenge across the sector ahead of earnings season. 

BMNR’s stock rose more than 1% in pre-market trade, after a dip of nearly 2% in the previous session amid broader weakness in the market. Retail sentiment around the company on Stocktwits trended in ‘bullish’ territory over the past day, while chatter dropped to ‘high’ from ‘extremely high’ levels. 

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